Rate hike on agenda

Council to hear second reading

October 15, 2012

The City Council of Webster City will hear the second reading of an ordinance Monday night to raise the electric base rate. The council meets at 7 p.m. at City Hall.

The council voted to raise the base electrical rate by 20 percent, an increase that would total $3.80 per month for residential customers. Councilwoman Linda Conaway cast the only nay vote.

The council looked at three options provided by City Manager Ed Sadler: raise just the base charge by 20 percent to come up with the same 5 percent overall; raise the kilowatt hour charge by 6.75 percent or both the base and kilowatt hour charges could be increased by 5 percent.

For the past two years, the city has passed along lower electric rate increases than those that the city received from its electric wholesale supplier, according to City Manager Ed Sadler. The most recent increase from the wholesaler was 11 percent. A rate increase of approximately 6 percent to Webster City customers was approved earlier this year. At the time, Sadler warned the council that there might be a need to revisit the rates should there be a long hot summer with high demand.

The council will also consider a resolution authorizing the mayor and city clerk to enter into a contract with Cropland Containers Inc. of Webster City for the award of a performance grant to support economic development and job creation. According to a memo to the council from David Toyer, the city's economic developer, the firm is in the process of acquiring two facilities in Webster City with closing on the properties expected in late October or November. Toyer said the business expects to relocate a portion of its business from Minnesota to Webster City, resulting in 18 new jobs to be created here and to be hired locally.

A request from Nick Hassebrock for a waiver from the sump pump ordinance will be reviewed. The council will also appoint one member to the Hotel/Motel Tax Board for an unexpired term ending May 31, 2015. A series of public hearing dates will also be set.